(Nov 11): Polymarket has cut jobs and terminated several contractor agreements in a reorganization as the prediction market startup seeks to compete ​with rapidly growing rival Kalshi.

An internal email from the company, ending a ‌contractor agreement, has been doing the rounds on social media platform X since last week. The company confirmed on Wednesday that the email screenshot was genuine.

Once the market leader, Polymarket now ​trails Kalshi in monthly trading volume. The rival prediction market ​has benefited from expanded distribution and partnerships, including a lucrative deal for the FIFA ⁠World Cup.

Polymarket declined to disclose the percentage of total workforce affected. Over 50% ​of the cuts were contractors, a person familiar with the matter told Reuters.

"As we’ve grown ​and brought on new leadership, we’ve reorganized to set the company up for its next phase of growth, which has meant a lot of new hires, changes in ​personnel and letting some people go,” the company said in an emailed ​statement on Wednesday.

Polymarket named veteran finance executive Warren Jenson as its first chief financial officer ‌in ⁠September. It also brought on former Uber executive Travis VanderZanden as its chief growth officer this year.

"We're reaching out with difficult news. As part of a company-wide reduction in force, we’ve made the decision to end your ​contractor agreement with ​Polymarket effective Nov ⁠4, 2026," the internal email posted on social media read.

Polymarket, like Kalshi, has faced government scrutiny over some of its marketing and other ​practices.

The Commodity Futures Trading Commission is probing whether Polymarket violated a ​2022 enforcement ⁠deal in which it promised to ban US users from its main overseas platform, Reuters reported last month, citing people familiar with the matter.

Polymarket is ⁠based ​in New York and has an offshore entity ​registered in Panama.

Kalshi raised US$1 billion late last month in a funding round co-led by Sequoia and Wellington, ​at a valuation of US$40 billion.

Uploaded by Siow Chen Ming